Saudi Oil Pipeline Capacity Target: 10 Million bpd

Saudi Arabia plans to raise its oil pipeline capacity to 10 million barrels per day within two to three years, Energy Minister Abdulaziz bin Salman announced on October 12. The Saudi oil pipeline capacity plan matters to FX traders because it targets the Red Sea export route as Houthi attacks on energy infrastructure continue.

Key Takeaways

Timeline: The expansion is planned within the next two to three years, according to the minister.
Current flows: The East-West pipeline carries 5.8 million barrels daily against a total capacity of 7 million barrels.
Gas pipeline conversion: Planned upgrades include converting a natural gas pipeline for oil transport.

What Happened

Abdulaziz bin Salman, Saudi Arabia's energy minister, said the kingdom will expand its oil pipeline capacity to 10 million barrels per day. He said the aim is to strengthen the country's energy transport system.

The East-West pipeline currently moves 5.8 million barrels daily. Its total capacity stands at 7 million barrels, according to the source report, so the new target sits well above today's ceiling.

The report did not include direct quotes from the minister. It gave no cost, funding or approval status for the project.

Background

The expansion responds to ongoing Houthi attacks on energy and aviation infrastructure. It is meant to make the energy transport system more resilient.

The plan also aims to maintain oil exports through the Red Sea and to keep domestic refineries on the west coast supplied. The report gave no dates, targets or scale for the attacks.

Market Impact

Crude oil: The source cites no oil price or benchmark move. The exposure is the Red Sea export route, which the expansion is designed to protect.
USD/SAR: The reference rate was 3.7500 (reference rate, 2026-10-12). The source links no currency move to the announcement.

What to Watch Next

Project details: Cost, funding and approval status were not disclosed, and they would show how firm the plan is.
Completion within two to three years: The 10 million barrels per day target depends on the expansion being delivered in that window.
Gas-to-oil pipeline conversion: The upgrade is the one specific engineering step named in the plan.

Bottom Line

Saudi Arabia is putting a numerical target on export resilience as Houthi attacks continue to threaten energy infrastructure. The source reports no immediate oil or currency reaction, so the story is about longer-term export routing rather than a price move today.

Saudi Oil Pipeline Capacity to Rise to 10 Million bpd